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Cadillac CT6 isn't dead for U.S.


NINETY EIGHT REGENCY

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Yeah.. I was going to post this around 2PM but was to overwhelmed with work.. and just like that... Cadillac.. no GM has fixed a great deal of issues I was pissed off with them about for the past 2 months. This is a helluva great thing to hear. And like Carlyle mentioned.. it will be a bargaining chip for the UAW talks coming up. 

To the people of America.. REJOICE!!! and BUY!!! Sometimes U gotta support what U love so that U can continue to love it

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What GM needs is to set up or convert a plant specifically to produce low volume models. GM sells about 9,500 CTSes annually in the USA proper. About 10K if you count Canada and US territories. That is tiny compared to the Cruze (150,000~300,000) and kinda disappointing compare to its chief rival the 5-series (~40,000), but it is not unusual in the realm of luxury cars that weren't big hits. The BMW 6-series is about 3,500 a year and the 7-series is about 7,000 a year.

Similarly, there is nothing wrong with the volume of the Cruze either despite declining to 50% it's volume several years ago. 150,000 cars is a lot. That is more than the 3-series, 4-series, 5-series and 6-series BMWs combined. If you can't economically produce it at a plant that is a production problem not a sales volume problem. The problem with the Cruze is that it doesn't move at a profitable price. The solution isn't to discontinue it or to move it at an unprofitable price. The answer is to sell fewer but sell them profitably -- be it 50,000 cars or whatever. I am sure the likes of Mitsubishi or Suzuki would have been delighted with 50,000~150,000 cars of any of their models.

The USA is a high cost country. And, the USA is waking up to the futility of "Free Trade" and perpetual deficits. GM is not going to win on price, period. GM is not going to be able to build cars cheaper than Koreans in Korea. GM is not going to be able send production to 3rd world countries and re-import cars tariff free -- the USA has had enough of this nonsense. The answer is not to sell more cars or to maximize market share. The answer is to sell cars profitably even if it means selling fewer cars. GM as a an auto-manufacturer in a high wage country can be a BMW or a M-B. It cannot be a Kia, a Hyundai, a Tata, a Geely or whatever.  I think they are starting to understand that 40 years later than they should, but I doubt they are fully committed to the proper paradigm shift.

Edited by dwightlooi
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